Deutsche Bank and Barclays Wednesday will begin the syndication process for a $350 million term loan backing Ocwen Loan Servicing’s acquisition of HomEq Servicing, according to sources.

Price talk has not been announced.

Ocwen Loan Servicing, a unit of Ocwen Financial, is purchasing loan servicing company HomEq for approximately $1.3 billion. The banks arranged the term loan earlier this month (LFN, June 1, 2010). The transaction is expected to close in the third quarter.

Ocwen Financial is rated B- by Standard & Poor’s.

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